Old Monk still has a fancy for Slug

Pubs company Old Monk, which earlier this year saw plans to buy rival Slug & Lettuce collapse, said it would still be open to further talks with the group. Old Monk emerged as a potential bidder for Slug & Lettuce in March but in April the two said talks had ceased. A month later, Slug said it was in merger talks with late-night bars group Po Na Na, but a deal is yet to be announced.

Old Monk finance director Jon Hale said: 'We thought we had a good chance and we gave it our best shot.' But he aded: 'It is still not over'.

The comments came as the group announced pre-tax profits in the year to 29 April were £1.2m, up from £784,000 last time. Turnover was up 63% to £18.5m from £11.4m. The total dividend will be 0.52p, up from 0.18p last time.

Now the company is planning another City outlet following the success of its Eastern Monk branch in Houndsditch. It is to open a mega-pub on the ground and mezzanine floors of the new Flemings bank head office near Gresham Street.

The group opened 10 new sites over the past year, taking its estate to 22 Old Monk pubs, three Springbok sports bars and nine pub restaurants. It plans to start work on pubs and bars in the summer in Wigan, Manchester and the City of London, and is in talks over several more potential sites.